This slide is my meeting report. I do not compose anything about the content.

1. Meeting Report
"Obstacles of Luxury Brands in Thailand"

2. Topic
• Luxury goods and luxury brands
• Thailand luxury market
• Obstacles of luxury brands in Thailand

3. Luxury Brand
• Luxury is not about richness
• Not about price Ex: Apple is not luxury
• High quality
• Heritage story
• Richness symbolic

4. Luxury Goods
• Jewelry and Time Piece
• Fashion and Accessories
• Automobile and Vehicle
• Wines and Spirits
• Property and Mansion
• Art and Home Accessory

5. Luxury consist of
• Exclusivity
• Craftsmanship
• Experience
• Distinction
• Long Lasting Value

6. Experience
• Story
• History
• Feel different when shop luxury brand
• Make you feel exclusive
• Gucci do leather good for long time ago
Craftsmanship
• Quality
• Material

7. Distinction
• Butler in 5 star hotel
Long Lasting Value
• Use for long time
• Still valuable when its old

8. Loyalties
• Step 1: Brand value
• Step 2: Brand attribution – a bit higher than
normal brand loyalty
• Step 3: Momentum – trust of the brand, love
the brand and repurchase the brand

9. History of Thai’s luxury market
• Luxury has entered Thailand for
hundred years Major customers of Thailand 2011
• Thai people prefer imported • 50% of customers are tourist
ex: China Cambodia
good • 25% from other part of
Thailand
• Social Class, Culture and norm • Bangkok people will shop at
UK and HK
use luxury good
• Art and beauty for Thai people

10. Main Shopping center of luxury
Shopping Mall Pros and cons Consumer Demographic and
psychographic
Siam Paragon – larger than other part mixed
- More traffic over the mall
Emporium Close to Sukumvit station -Japanese
-Indian
Gaysorn Plaza and Erawan -Connected with 5 star hotels - niche market
Bangkok -Many of 5 stars hotel - business men
- real high class
-Prefer quiet place
-Need more privacy
Central Chidlom Good reputation to -Uk
-Rural area or up countries -Japan
-Foreigners

11. Players
• Global Luxury Group – LV, Chanel and Prada
• Brand’s own operated
• Initial local distributor

12. Obstacles of Luxury Brand in Thailand
• Customer
• Distributor
• Principle
• PR and Communication
• Location and Landlord
• Employee and stuff

13. Customer
Define your customers
Asian and Europe consumer’s behavior
• Demographic data • Asian use luxury product to
• Geographic data •
show-off
Japanese and Europe use
• Spending power luxury product because they
are caring about art and quality
• Lifestyle and attitude • HK and NY try to be different
from just rich, unlike some
• Need and objective others part of it’s city

14. Customer
Educate customer
• PR and Educating of history
• Advertising – create dream

15. Distributor
Should consider of
• Brand Core-Value
• Brand life cycle and trend
• Brand Management
• Aim or mission
• Business strategy
• Financial support

16. Distributor
Inventory Management
• Stock 5-7 times of sales target
- Because luxury must be presented all time
- Concern about the space and goods
• Stock Replacement
- How often
- Timing – seasons product
• Stock left-over (Outlet)
- Clear stock
- Outlet do Not harm brand image
- Discount 50% now or 70% next year

17. Principle
• Nature of each principle
• Conservation of brand
• How to purchase
• Promotion
• Communication problem
• Relation
• Supporting – discounting, order more product
• Press release in brand owner’s country

18. PR and Communication
• Exhibition, event and party
– Prada create exhibition in Korea
– Mobile exhibition of Chanel, to educate story of the brand
• Sale accessories
– Bag
• Store display
• Communication channel
– Facebook, website and EDM
• Advertising, advertorial
• Celebrity / star power

19. PR and Communication
• Supporting factor
– Transportation
– Luxury hotel connect to mall
– Business function
– Travel function
• Location / landlord
– Neighborhood / Brand Mix
– Traffic
• Press / Media
– Connection and press relationship is very important
– Intelligent magazine

20. Employee and staff
• Luxury Experiences
– Must have luxury experience
• Personality
– Manner
– Cleanness
• Knowledge
– General
– Brand and product
• Basic skill
– Language
– Business operation
– Retail – process of selling

21. Business Partners
• Contractor / forwarder– shipping knows the
good very well

22. Uncontrolled issue
• Flooding
• Political
• Environment
• Government / regulation
– Import tax reduced from 80% to 30%

23. Key Strategies
• Know your customers behavior
• Control the value of the brand
• Connections (press)
• Keep educating customers, employees and
yourself
• Increase dreams of your customers